Alsvanga, Latvia

Special Equipment Repairing Hangar

Active

Special Equipment Repairing Hangar

Borrower:

SIA “MKM Mežs”

Type:

Business growing

Opens:

25 Oct 2019

Extended till:

-

Interest rate:

19.10% per annum

Loan period:

11 months

Funding target:

€ 357 000

Still need:

€ 96 402

Funded:

€ 260 598

Buyback:

7 % fee

Risk level:

Medium

Collateral agent:

Monethera Group OU

Guarantees:

Pledged commercial assets and personal guarantees of the director

Repayment schedule:

Monthly on the 1st day of each month

We are not tired of looking for new profitable projects for you to invest your assets and to make money. Today Monethera is pleased to offer you a unique lucrative opportunity to diversify your portfolio. SIA “MKM Mežs” is a leading Latvian forestry company engaged in creating, managing, using, conserving, and repairing forests, woodlands, and associated resources for human and environmental benefits. Over many years, the company has been continually updating its technical base and investing in staff development. They are confident that a highly- qualified specialist is key to the successful functioning of any business. The number of employees has been steadily increasing over the past few seasons. SIA “MKM Mežs” offers a complete cycle of services in forestry. Starting with an integral part that is logging, delivery to the final recipient, and other wood transportation services. It provides heavy, forest, commercial, agricultural and construction machinery services and maintenance and offers trailer services for transportation of oversized and heavy loads. First of all, we would like to mark the untouchable reputation of the mentioned company demonstrated by many years of carrying out its activities while following all applicable laws and regulations in forestry in Latvia and its cooperation with different international partners.

Project's target

Recently, SIA “MKM Mežs” decided to invest money in the construction and equipment of a hangar for repair and maintenance of trucks and specialised equipment (harvesters, forwarders, tractors, excavators, etc.). The company has already acquired a suitable plot of land on which there is an unfinished building with the necessary amenities, ideal for conversion into a hangar. To implement this project, it is necessary to complete the construction of an unfinished building, purchase, deliver, and install the necessary equipment.

Nowadays, when logging, agriculture and industry are becoming more and more significant parts in the global economy. The amount of machinery and equipment designed to improve working conditions and accelerate production rates is increasing. The timely maintenance, inspection of technical conditions, control, and other necessary procedures are the key to proper operation and long-term functioning of the equipment. Only a few companies on the market can boast of the presence of highly qualified specialists of a wide profile who can inspect, identify a problem and quickly repair, if necessary, any type of equipment. SIA “MKM Mežs” has established a reputation of quality for products and services in the Latvian market. A wide range of proposed services and their highest quality have allowed the company to have clientele who are ready to participate in new projects of the company. Word of mouth works best, and company specialists have already managed to evaluate the interest of customers in the appearance of a hangar for technical maintenance of the machinery and equipment.
At Monethera, we are firmly convinced that investing in such a thought-out, demanded, and an already functioning and successfully working project will bring you money and will create new opportunities for future investments.

About the company

SIA “MKM Mežs” operates in the market of forestry, machinery, and logistics. The main office of the company is situated in Alsvanga, in the western part of Latvia. Many years of operation in a Latvian national market allowed the company to create a team of highly qualified professionals, to consistently and steadily improve the quality of the service and apply modern technologies. The company persistently works on optimizing the process and minimizing every possible risk. The company owns a total of four vehicles. Two of them are equipped with hydraulic manipulators, which are designed for logs. Another of the vehicles is equipped with a heavy- duty trailer with a total load capacity of 40t, as well as a tractor with a tipper semi-trailer that carries bulk cargo. SIA “MKM Mežs” buys all types of forest properties, from natural and legal persons with land, partly and fully developed forests. The forestry experts of the company professionally evaluate the cutting area and develop and implement an individual plan for each area. After the assessment, experts propose a development model adapted to the forest soil and property conditions. The company also evaluates felling sites and forest properties as well as the soil preparation service. It includes pre- and post-harvest tillage, as well as the formation of young stands. The purpose of this service is to improve the quality of trees by providing them with sufficient space for growth and lighting, as well as through the selective felling of forest diseases, pests, animals or otherwise damaged, wind-blown, and broken trees. We, at Monethera, are firmly convinced that this company is a vivid example of a successful and reliable market player. The company has shown the ability to create a tailor-made solution for each type of project, handled economically, safely, and carefully.

Summary / Project description

Industry: forestry / logistics.

SIA “MKM Mežs” has already acquired a spot with an unfinished building and want to rebuild it into a hangar for the repair and maintenance of trucks and specialized equipment (harvesters, forwarders, tractors, excavators, etc.). The hanger will be equipped with the new high- technological lifts for trucks, tire changers, oil scraper equipment, jacks, scanners, stands for disassembling engines, slipways, etc.


The total cost of the project is 528.000 EUR.

At the moment, SIA “MKM Mežs” is ready to finance 171.000 EUR to guarantee uninterrupted and successful operation of the company. To cover all the expenses needed for the realization of the project, the company decided to ask for additional funding.

The necessary amount of assets is 357.000 EUR.

The loan period is for 11 months.



This project guarantees high profitability and short time limits for the realization and liquidity. If you want to diversify your investment portfolio and receive your money back rapidly, we offer you an optimal option. The current investment opportunity offers you to loan money with a 19,1% annual interest rate.

Business model

The industrial building (hangar) has a total area of 600 sq.m.
The readiness of the building at the moment is 20 percent, the foundation and the elements of the frame are installed, and there are necessary amenities.

Necessary works:

facade and roof cladding;

installation of gates;

interior decoration;

installation of lighting;

conditioning and tearing systems;

commissioning.

Project stages:

The company has already acquired a suitable plot of land on which there is an unfinished building with the necessary amenities, suitable for conversion into a hangar.

The cost of the land is 18.000 EUR. The total area is 1500 sq.m.

The development of a construction project and its approval has a cost of 15.000 EUR.

The cost of connecting the building to the necessary amenities is 48.000 EUR.

The project cost of the construction is 300.000 EUR. The total area of the building is 600 sq.m.


The commissioning and registration.

Purchase, supply, and installation of equipment (lifts for trucks, tire changers, oil scraper equipment, jacks, scanners, stands for disassembling engines, slipways) cost 140.000 EUR. All the equipment is made in Italy.

Evaluation, obtaining the loan and repayment of the received financing incurs a total cost of 7.000 EUR.

The total cost of the project is 528.000 EUR.



Current assets that the company is ready to invest are 171.000 EUR.
The necessary amount of additional funding: 357.000 EUR.
The percentage for the attracted financing: 19,1%.
Bank loan to return funds to investors is 432.000 EUR. 80% of the estimated value (540.000 EUR).

Why is SIA “MKM Mežs” looking for funding?

SIA “MKM Mežs” decided to construct a hangar for repair and maintenance of trucks and special equipment (harvesters, forwarders, tractors, excavators, etc.). The company has already acquired a suitable plot of land on which there is an unfinished building with the necessary amenities, suitable for conversion into a hangar. To implement this project, it is essential to complete the purchase of land, coordinate the project, complete the construction of an unfinished building, purchase, deliver, and install the necessary equipment.
For the moment, the company is fulfilling previously assumed commitments, and to avoid any risk for these existing projects, the management decided to loan the shortfall amount of funding, 357.000 EUR. Meanwhile, they are ready to cover 171.000 EUR.
We, at Monethera, carefully examined the proposal of SIA “MKM Mežs” and we are convinced that they are able to fulfill the assumed obligations and guarantee the repayment of the entire loan.

Loan

The funding target is 357.000 EUR for 11 months.

Interest rate: 19,1% annual, secured debt.

Loan period: 11 months.

Repayment schedule: Monthly, on the 1st day of each month.

Loan purpose: To finish construction of a hangar for the repair and maintenance of trucks and special equipment (harvesters, forwarders, tractors, excavators, etc.).

Repayment of principal loan in full at the end of the loan period. After commissioning, re-credit at the bank.

The future of the project and long term cooperation:

Once the total amount of loan is repaid, SIA “MKM Mežs” is open to discussing further cooperation opportunities.

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